NavInfo (002405) 2019 Semi-annual Report Review： Short-term performance under pressure Smart Car Brain strategy continues to advance
NavInfo (002405) 2019 Semi-annual Report Review: Short-term performance under pressure “Smart Car Brain” strategy continues to advance
Event: The company released its semi-annual report for 2019. In the first half of 2019, the company achieved operating income10.
84 ‰, an increase of 9 in ten years.
43%; realized net profit attributable to shareholders of listed companies of 8,560.
30,000 yuan, down 47 every year.
56%; realized non-net profit 6154 attributable to shareholders of listed companies.
RMB 860,000, down 54 each year.
Key points of investment: Short-term performance is under pressure, and the “smart car brain” strategy continues to drive more revenue for the company, and investment losses drag down performance.
Car sales in the first half of 2019 were 1012.
70,000, an average decrease of 14% in the same period last year.
Affected by the overall downturn in the automobile market, coupled with fierce market competition, the company’s performance was dragged down.
In terms of discrete business, Jiefa Technology was broken due to the downturn in the vehicle market, and the sales of automotive infotainment system chips declined, resulting in a decline in the company’s chip business operating income34.
44%; navigation business, advanced assisted driving and autonomous driving business, location big data service, and connected car business revenue increased by 7 respectively.
Net profit attributable to mothers decreased by 47 in the first half of 2019.
56%, mainly due to the connected subsidiary of Connected Cars constantly causing the company’s investment income to be -8622.
160,000 yuan, investment losses dragged down the company’s overall performance.
The increase in gross profit margin and the long-term benefits of continuous high-intensity research and development.
1) In the first half of 2019, the company’s comprehensive gross profit margin was 74.
03%, 5 per year.
The 41 single ones are mainly due to the cost of map data and the increase in the cost of materials for the commercial vehicle networking business.
2) The company’s R & D investment has increased 杭州桑拿网 significantly at most.
In the first half of 2019, the company’s R & D promotion was 5.
44 ppm, an increase of 18 years.
59%, R & D expenditures accounted for 50% of operating income.
In the first half of the year under pressure, the company’s R & D expansion in core businesses such as autonomous driving maps, advanced positioning, and big data continued to increase.
We believe that the decrease in gross profit margin is mainly due to changes in the external environment. The company’s continuous high-intensity research and development for technology and product reserves are being converted into forward earnings in the form of orders. It is expected that the future increase in the proportion of new products will drive the company’s gross profit margin to rise.
The “smart car brain” strategy continued to advance, and the ecology gradually formed.
1) Navigation business.
The company’s self-developed enterprise-level FastMap platform has been officially launched, which can comprehensively improve and develop basic data service capabilities and daily update joint testing capabilities to meet the high-level application requirements for map data accuracy, freshness, and refinement in new application scenarios.
2) Advanced assisted driving and autonomous driving business.
The company’s ADAS map for driver assistance has covered national highways, national highways, provincial highways and important urban roads, and is cooperating with multiple customers for sample data verification.
In June 2019, the company’s commercialization of L2 level autonomous driving solutions in the field of commercial vehicles has entered the stage of real vehicle testing and verification.
The company passed the Beijing Autonomous Driving Test T3 level license test with four 16-line lidars, two long-range millimeter-wave radars, and an auto-driving solution equipped with a monocular camera that automatically develops visual perception algorithms. L4-level autonomous driving related technology solutions are under construction.
3) Chip business.
The company’s IVI vehicle infotainment system chips and AMP vehicle power electronics chip chips are increasing in number, MCU chip applications in the field of body control continue to expand, and achieve breakthroughs in industrial-grade and other fields. TPMS chips are scheduled for mass production at the end of 19th.
It will further lay the foundation for the landing of integrated autonomous driving solutions.
4) Location big data service.
Based on the new MineData platform and visualization capabilities, a new overall solution for the traffic police, public security, transportation, planning and insurance industries is launched.
For example, the third phase of the road condition data engineering project was won, the Xi’an Public Security Bureau “Safe Map” integration project was released, the “China’s Major City Road Network Density Monitoring Report” was released in 2019, and Huawei Cloud launched a traffic intelligent transportation Go solution.
5) Telematics business.
In the passenger car networking business, the company’s WeLink mobile car connectivity solution for light car networking solutions has continuously been recognized by the high-end models of the front-loading market; the new generation of artificial intelligence voice car “Dtreme 8 music car machine” -D9 officially launchedThe vehicle-machine system “Athena” has made a breakthrough in the front-loader market.
As for the commercial vehicle networking business, as of the end of June 2019, the company has established close cooperation relationships with eight of the top ten commercial vehicle brands, and the domestic truck incremental market coverage has reached 70%.
In addition, based on the advantages of ADAS map data, the core algorithms of L2 level autonomous driving solutions based on ADAS map data are continuously upgraded to meet the fuel-saving and consumption-reduction requirements of commercial vehicles.
Based on the profit forecast and investment rating, we expect the company’s EPS for 2019-2021 to be 0.
34 and 0.
43 yuan / share, optimistic about the company’s technology and product reserves in the field of autonomous driving, maintaining the “overweight” level.
Risks suggest that the Chinese automobile market continues to be sluggish; external competition is exacerbating risks; new business progress is less than expected; autonomous driving landing is lower than expected.